An 80 year old man was the insured on a $10,000,000 key man life insurance policy with AIG. The company he owned was the owner of the policy. The annual premiums were $30,000 a year. The policy only had a cash surrender value of $13,000.
The Problem or Challenge
After the sale of his business he no longer needed the key man policy to cover the potential financial loss to his compa-ny. He was planning on turning the policy in for the cash surrender value of $13,000 until being educated about life settlements.
The Source of the Lead
The insured’s insurance agent.
The owner received a purchase price of $1,200,000.